Section 558. Subsidies

1.  The  obligation  of the state to pay periodic
  subsidies to an authority or municipality for a project which  has  been
  leased   or  sold  to  a  housing  company,  and  the  obligation  of  a
  municipality to make subsidies in at least an equal amount, as  required
  by  section  seventy-three  of the public housing law, shall cease as of
  the last day of the fiscal year next after the  effective  date  of  the
  grant, sale, lease or conveyance.
    2.  In  the event that an authority or municipality which has granted,
  sold, leased or conveyed a project to a housing company, for any  reason
  or in any way resumes possession of such project, the obligations of the
  state  and  municipality  to  pay subsidies, as provided by the terms of
  section seventy-three  of  the  public  housing  law,  shall  be  deemed
  restored  as  of the first day of the fiscal year next prior to the date
  of such resumption of possession of such project.